The Negative Impact Of Globalization In India

The automotive industry, through its internationalized supply chains processes, has been highly affected by globalisation in the last decades. Carmakers try to reduce costs and increase productivity by finding effective global value chains. Thus, they split production stages and target locations where they benefit of commercial advantages (Leech et al., 2014). After the 2008 economic crisis, most of foreign direct investments were made by established western carmakers in emerging markets such as India, thanks to cheap workforce. India became the sixth car manufacturer, and is now a manufacturing and innovative hub worldwide encompassing a major part of the production process (Makeinindia.com, 2015). Nonetheless, some of the stages are still outsourced in European countries, where leaders’ expertise is prominent. In our case, an Indian conglomerate is trying to buy an established UK gearbox manufacturing company, which is part of a global manufacturer supply chain. We will therefore advise this corporation and outline the positive and negative side effects that they could face because of Brexit negotiations.
Many assumptions will be taken into account and change the analysis. As it is a conglomerate, its desire to acquire a gear manufacturer firstly pushes us to think that, as a multi-industry company, it also has a car-manufacturing arm in India. We therefore assume that they are car producers that want to access to Europe or improve their product line by incorporating